The Nation Newspaper

Category: Industry

  • Recession: Experts proffer solutions

    Recession: Experts proffer solutions

    The economic recession foisted on Nigeria by the persistent low crude oil prices has continued to hit harder. But, at a colloquium in Lagos organised by Centre for Values in Leadership (CVL) last week, experts from diverse backgrounds offered tips on how to pull the economy out of the jaws of recession and position it for sustainable growth and development. Assistant Editor CHIKODI OKEREOCHA who was there reports.

    It was packaged to honour the duo of first civilian governor of Lagos State, Alhaji Lateef Jakande, and the Chairman Board of Directors, Institute for Policy and Economic Development, Dr. Kalu Idika Kalu, for their contributions to the development of Lagos State and the economy.

    But beyond the razzmatazz of the 35th Leader Without Title (LWT) Leadership Tribute Colloquium in Lagos, last week, was an equally germane issue of how to turn the economy around. At the event, organised by the Centre for Values in Leadership (CVL), experts from diverse backgrounds brainstormed on how to save the economy and Nigerians from the jaws of recession.

    From leveraging economic diversification to human development as well as tinkering with the constitution, experts, who spoke at the colloquium held at the Nigerian Institute of International Affairs (NIIA), with the theme, ‘Public life and reforming the economy and society’, said the need for continuous reforms have never been more imperative.

    Moderating a panel discussion on the theme, CVL CEO/Founder Professor Pat Utomi said there was the need to move the economy forward through reforms, which must be a continuous process. And to achieve this, he said there was the need for quality public dialogue.

    According to him, Nigeria does not have active think thanks to dialogue and chart the way forward. “Our leaders fear thinking people; that is one of the challenges the nation has,” Utomi pointed out.

    The CVL Founder lamented what he described as “Nigerian leaders’ penchant to impose their ideas on the rest of us. Why do Nigeria’s leaders fear conversation?” he asked, insisting:“We must dialogue a great deal if we want to move forward.”

    The university don observed that the good brains have long been excluded from leadership by a group of young military men who have held Nigeria captive for 50 years, directly or through surrogates when crisis of legitimacy pushed them away.

    Utomi was not done. He observed that the way Nigeria is going, her growing population, particularly the youth constitutes one of her biggest challenges. He, therefore, said: “We need to invest in the youths, the younger generation to make them reap the democratic dividends the way China and India invested in their large populations and transformed them into assets.”

    His observation was in sync with that of Senior Partner, Olisa Agbokoba Legal, Dr. Olisa Agbakoba (SAN). Agbakoba, one of the discussants, said one of the viable tools to bring Nigeria out of recession is creative borrowing to fund public works. According to him, there was the need to expand the Gross Domestic Product (GDP) by at least 10 per cent in the next five years to be able to cater for the growing population.

    As Agbakoba pointed out, “A situation where only about 10 per cent of Nigerians control the commonwealth at the exclusion of 90 per cent of Nigerians most of who are youths portends grave dangers.’’ He said, for instance, that the growing number of unemployment youths who have no access to basic necessities of life was a time bomb waiting to explode.

    He noted that apart from the urgent need for deliberate policies to create jobs for the teeming unemployed, there was need for political and economic federalism. Hear him: “We lie when we say we are a federal state. We are a unitary state run by crooks and vagabonds who have taken over.” He argued that until Nigeria has a people-oriented constitution that would make Nigerians hold the government accountable to them, the country will not get anywhere.

    The SAN emphasised that Nigeria does not have a constitution made by Nigerians, as all the constitutions have been imposed on the people either by the colonial masters or the military. “The big reform must be a constitution that the people give,” he stressed.

    Executive Chairman, Phillips Consulting, Mr. Foluso Phillips, who was also a member of the panel, said the envisaged change that would pull the economy out of recession must be driven by the private sector.

    “There is already a paradigm shift that government must partner the private sector to make the economy work,” Phillips noted, adding that there was the need to transform the civil service to attract foreign investments.

    The Nation learnt that foreign investments have been drying up as investors shy away from Nigeria in the wake of the economic downturn forced by persistent low crude oil prices. The collapse of oil prices from about $112 a barrel in 2014 to less than $50 at present is said to have pushed the economy into a recession, which put tremendous pressure on government’s finances.

    It could not have been otherwise. With crude oil sales accounting for 70 per cent of government income and 90 per cent of export earnings, experts say that government must aggressively pursue diversification and human development  to quickly recover from the recession.

    They note that this could be done by tapping the nation’s abundant mineral resources. Some of them, who spoke at the colloquium, also advised the government to pay more than lip service to agriculture by supporting rural farmers with soft loans and input. These, according to them, are necessary to move the country from being import-dependent to exporter of products.

    The goal of LWT was to inculcate in the next generation of leaders the spirit of service and self- sacrifice as exemplified by the honourees, namely Jakande and Kalu. According to Utomi, the programme was in keeping with the Centre’s commitment to celebrating outstanding sector leaders for their special contributions in the sector where they worked, and encouraging the younger ones to emulate their virtues.

    The LWT Leadership Tribute Colloquium honours those who are 70 and above and have left a mark worth emulating. The programme honoured Jakande and Kalu on their 87th and 77th birthdays.

    Utomi said, for instance, that as Lagos State governor, Jakande deployed methods quite unusual thus providing evidence of personal commitment to service. “The lessons from Jakande’s unconventional but impactful ways in dealing with education at a time of significant population growth in Lagos constitute part of a germane legacy,” he said.

    The CVL founder also said that as former Minister of Finance and Economic Planning, Idika Kalu was active in seeing the challenges of the public service struggling to manage change. Describing Idika Kalu as “an intellectual and policy activist,” he said his (Kalu’s) reflections on the challenges of public service were instructive.

  • ‘Combination of robust ideas, policies panacea for recession’

    For Nigeria to get out of her economic recession, a combination of robust and workable ideas and policies are required, an expert and Managing Consultant, Nesbet Consulting, a Lagos  firm of finance and management consultancy, Mr. Alaba Olusemore, has said.

    Speaking to The Nation, Olusemore said there was the need to first take a critical look at those articulating the policies that drive the economy with a view to ensuring that they are “round pegs in round holes.”

    He said, for instance, that he was yet to understand why the Vice President, Prof. Yemi Osinbajo, was heading the administration’s economic team.

    Olusemore said though Osinbajo’s pedigree as a Senior Advocate of Nigeria (SAN), is not in doubt, there are experts and technocrats who are properly trained in the dynamics of the economy to head the team or be part of it.

    “Putting the right people in the right places to drive economic policies is one sure way to pull the economy out of recession,” the expert told The Nation.

    He pointed out, for instance, that at the level of policy, the Treasury Single Account (TSA) under which all revenue receipts and payments are made into a central pool in the Central Bank of Nigeria (CBN) should be reviewed in a way that allows the idle funds to be invested in public works, such as health and other infrastructure, such as power, roads, and railways.

    TSA is a public accounting system using a single account, or a set of linked accounts by government to ensure all revenue receipts and payments are done through a Consolidated Revenue Account (CRA) at the Central Bank of Nigeria (CBN).

    The idea was to ensure adequate monitoring of government revenue receipts and expenditures and block leakages, as no Ministry, Department, and Agency (MDA) is allowed to keep any operational bank account.

    But Olusemore argued that rather than keep the money idle, the government should invest it in public works to galvanise other sectors, particularly the real sector, which is the economic growth engine.

    The expert also noted that the government was giving undue focus on the fight against corruption at the detriment of other issues plaguing the economy and Nigerians.

    The economist called for policy consistency, pointing out, that “we don’t know the government’s policy direction in the manufacturing sector.”

    While insisting that “there must be a clear-cut policy on manufacturing,” Olusemore said manufacturers should be encouraged with tax incentives and access to Foreign Exchange (forex), while also subsidising their power consumption rates.

    Reminded that the CBN recently announced a 60 per cent special forex allocation window for manufacturers, Olusemore said though it was a welcome development, the issue of implementation remains critical, as most manufacturers were not getting access to the special forex window.

    He said another sure way to get the economy back on track was for the government to manage its expenditure properly.

    According to him, the time had come for the government to walk the talk by reducing recurrent expenditure and investing more in capital expenditure.

  • ‘Nigeria is an investment haven’

    ‘Nigeria is an investment haven’

    Chime Nwagbara is the Project Coordinator of the Eko Business Dinner, an informal executive business event for organisations, companies and business-minded individuals across the world. He shares the vision of the project with some journalists. DANIEL ESSIET was there

    What led  to the conception of the Eko Business Dinner (EBD)?

    With the state of the economy, there is an obvious need for expediency and collaboration in business in Nigeria; a diversified but unified approach to business. In other words, collaboration will aid in achieving whichever target the industry or the entrepreneur has set.That is why the Eko Business Dinner has been set up. It is a forum where people or heads of organisations with the same target can meet one-on-one and discuss issues, trends and solutions.This will definitely enhance industrial collaboration and partnership, which hopefully will lead to synergistic results. In my opinion, Nigeria really needs such forum today to address the current economic recession.

    Who is your target audience?

    Our target audience basically are the business community, the professional community, governmental organisations, especially the financial institutions as well as major players in oil and gas, agriculture and maritime sectors. Nigerians need to be heard at all levels. The Eko Business Dinner is a cross pollination of public servants, private individuals and foreign interests, all put together in one place for a period of time. It is a forum to discuss any and everything directly with the right persons. I reiterate the right persons.

    You will be hosting the first edition on October  22. Can you tell us more about it?

    The Eko Business Dinner is an informal executive business networking event for organisations, companies and business-minded people from all over the world. It is a quarterly event, and it is filled with people (local and foreign investors) and multinational organisations seeking trade and investment opportunities. The theme for this edition coming up on 22nd October 2016 is: ‘Nigeria’s Economy Today: A Need for Collaboration’ A number of foreign and indigenous banks will be in attendance, particularly to inform the people on how and where to procure single digit interest rates for:

    • Entrepreneurial development (SMEs) loans, infrastructural development loans (public and private sectors),government economic development schemes (agricultural, etc.) and large scale industrial finance.

    It is a great forum for states, organisations and businesses to inform the world of their economic strengths or needs, structures, natural resources and export potentials to a select and capable group of foreign and indigenous investors alike.

    What should guests and participants expect from the first edition?

    They should expect first hand interaction with dignitaries and executives. They should also expect a bouquet of novel ideas, referrals and exchange of contacts and opportunities to acquire soft and long-term loans.

    Networking has become a buzzword in Nigeria, with several networking fora and business networks springing up. What unique value propositions does the Eko Business Dinner offer enthusiasts?

    Without doubt, it offers collaboration between and among local and international business men and organisations.

    Is there a plan for Eko Business Dinner to become a Business Club, with a charter and membership opportunities and privileges?

    You are absolutely correct and I can tell you that, that is the intention. That is why this event is going to run on a quarterly basis and eventually leading to room for improvement.

    What vision do you have for Eko Business Dinner – say in the next five to 10 years?

    In five years, we hope that the Eko Business Dinner would have evolved into a movement and a point of reference.

    What are your thoughts on the on-going recession? Any concrete ideas on how the government can successfully navigate this narrow path? And do you think we are in this for the long haul?

    As a strong patriot, I believe that President Buhari together with his technocrats including the Minister of Finance, Mrs. Kemi Adeosun, are doing their best to address the situation in the country. We need to focus on local manufacturing and production, provide the necessary tools for increased export in food and meat and diversify the economy. Regarding the long haul,No, we are not, because the administration is working pretty hard to make sure we get out of the recession.

    Do you see the EBD morphing into a forum that can be used to influence government’s policy direction as it affects local and international businesses?

    Yes, we do. In fact, we hope to become a point of reference on economic discussions and practical solutions.

    What are your international partners and associates telling you about Nigeria’s current economic situation? With airlines and shipping companies leaving and businesses closing, leading to massive job losses, is Nigeria investment-worthy at this point – is it a safe investment destination?

    It has become very bad at this point in our history; Nigeria however remains a haven for investment because of our vast human and natural resources. We can only continue to tell investors of the positive parts of our country, especially our export potentials amongst others and make efforts to reduce or share in their risk when they invest in Nigeria. This is what the EBD is doing; bringing Nigerians to share in the risk of investors who bring their investments to Nigeria.

    Any word for Nigerian start-ups who may be losing confidence amid the recession?

    The word recession comes from the word recess, which practically means a break or holiday. Our economy is only on a break, a short break. We will bounce back very shortly as the President Muhammed Buhari’s government is doing everything humanly possible to make sure of this. I would advise everyone that makes decisions (business decisions) to pick tickets to the Eko Business Dinner. They will definitely be glad they did.

    Tell us about yourself.

    I am the Chief Executive Officer of AIGTC Ltd., an Agro-commodities exporting company; Chief Executive Officer of Struts Enterprises, which is an events planning and management company and I am the Project Coordinator of Eko Business Dinner. Finally, I am a patriot who believes in Nigeria and is optimistic about poverty alleviation and trade / industrial growth of the nation.

  • Buhari to open Lagos International Trade Fair

    President Muhammadu Buhari will launch this year’s Lagos International Trade Fair to begin on November 4.

    The fair with the theme “Positioning the Nigerian economy for diversification and sustainable growth”, th eorganisers said, would explore management mechanics of achieving sustainable growth in the pursuit of diversification.

    The Chairman, Trade Promotion Board, Lagos Chamber of Commerce and Industry (LCCI), Mr. Sola Oyetayo, at a briefing in Ikeja, said the recession may not affect participation in the fair.

    He noted that over 500,000 attendants, 2,000 exhibitors from 22 states and 200 foreign ones were expected from 15 countries including China, Japan, India, Indonesia, Ghana, Egypt and South Africa, among others.

    Oyetayo said the fair would focus on all sectors of the economy through promotion of partnerships and critical interventions. He added that the fair would foster trading engagements and enable exchange of innovations and ideas.

    It will hold at the Tafawa Balewa Square, while the Corporate Business Exhibition and Creative Industry Exhibition wil l hold at the Eko Hotels $ Suites, Lagos.

    Besides regular activities, Oyetayo said a platform had been carved out for secondary school students across Lagos State to compete in an essay writing competition to mark its 30th anniversary.

    “Interestingly, the need to encourage the interest of our children in economic issues cannot be over-emphasised. Our 30th anniversary also features essay writing by secondary school students to evaluate their knowledge and deepen their understanding.

    “In addition, we are hosting an international investment conference to create a platform for local and foreign investors to rub minds on how to truly make their investments sustainable in the different sectors that will be discussed,” he said.

    On how to set the economy on the recovery path, Oyetayo said  sale of national assets may not mitigate the brunt of the recession, adding that the government needed to adopt a solution- based response. He, however, pledged that the chamber would be relentless in prompting the government on possible solutions.

  • ‘Nigeria loses N3t in six months to Niger Delta crisis’

    The Federal Government has been advised to embrace dialogue rather than resort to war to resolve the crisis in the Niger Delta.

    A council member of Nigeria-British Chamber of Commerce, Mr. Misbau Opeyemi Aminu, an engineer, who gave the advice in Lagos in an interview, said Nigeria was losing N3 trillion every six months to the crisis.

    He said the use of force would be counter-productive in the long run, adding that with his experience in community engagement, the challenge in the region, which was hurting the economy, could be resolved with dialogue, special programmes, compensation and infrastructure development.

    Aminu said the country had almost shut down, with Gross Domestic Product (GDP) declining to almost half the value since the latest militancy in the region started.

    He said something urgent needed to be done to save the economy from collapse.

    According to him, the Niger Delta issue needs genuine dialogue that would involve the disadvantaged people, analyse grouses, alleviate pains, address immediate concerns, and offer promise of a rewarding future.

    Aminu said, “The inhuman conditions have changed everything about the Niger Delta, remolded average minds and brains in the region and caused them to lose trust in the leadership. They have also lost trust in the nation, become suspicious of every move, defensive in nature and rebellious as a group etc.”

    He stated that, over time, the people of the Niger Delta “tasted the ‘Black Gold’, and found it was sweeter than fishing and farming. What they couldn’t get legitimately they have accessed illegitimately.

    “Pipelines have been tapped for illegal refineries, and oil transported in small barges into awaiting heavy ships on the high sea. Huge money is realised, mansions built, parties held, and lives have become ostentatious. It is now difficult for the average man from the area to embrace farming and fishing.”

    He added that the agitators had also realised the relevance of oil to the nation’s revenue put at 85 per cent and gas, which hovers at 75 per cent.

    “Their mentality, social behaviour and social structures have been destroyed over a long time. Restoring their trust, mind and brains to the Nigerian project will take a while. The lifestyle destroyed over the years cannot be corrected through the barrel of the gun,”Aminu pointed out.

    He listed the agitators’ pain points to include destroyed farmlands and aquatic life, polluted environment, inadequate or selective compensation, and systemic inequality among others.

    Aminu said that the inequality in the region manifests in a situation where non-oil producers are favoured with juicy oil wells, while the bearer of the oil wells lingers in poverty, youth joblessness, lack of meaningful development, and dearth of infrastructure, among others.

    According to him, a lot of contracts such asconstruction of roads, hospitals, and schools were awarded to different contractors by the Federal Government, Niger Delta Development Commission (NDDC), International Oil Companies (IOCs), banks, and corporate organisations either as developmental programme or as Corporate Social Responsibility (CSR) projects some of which were financially mobilised but unexecuted due to the attitude and frustration from the people.

  • Electricity: US to help Nigeria generate 10,000mw in five years

    Nigeria may, in five years, generate 10,000 megawatt (mw) of electricity if United States (US) President Barack Obama implements the report of the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) before leaving office in January.

    The PAC-DBIA comprising 15 American private sector leaders with business operations throughout Africa was  appointed by Obama in 2014 to advise him on how to advance the US-Africa business agenda.

    It recommended, among others, the acceleration of energy infrastructure in Nigeria where the U.S. is expected to  pursue a detailed action plan to achieve 10,000mw of electricity.

    The report advised that as a result of Nigeria’s enormous potential as the largest country in the continent in terms of both population and GDP, and because the electricity generation and distribution capacities in Nigeria are among the least developed on the continent,  President Obama should focus on Nigeria as the focal point for energy infrastructure on the continent.

    The advisors recommended that US and Africa policy makers should collaborate on identifying and facilitating investment in electricity generation, especially for the hard- to-finance early stage projects.

    They further asked Obama to see the provision of electricity in Nigeria and other sub Saharan Africa countries as his greatest achievement to drive growth and development in sub Saharan Africa.

    They asked President Obama to pursue tax treaties with key African countries poised for large scale growth and development, including Nigeria and Ethiopia.

    While the advisors all have active business operations on the continent, they  travelled as a delegation led by US Secretary of Commerce Penny Pritzker to East and West Africa to meet with presidents, ministers of trade, investment and commerce, as well as the leading private sector players in both African and US owned businesses.

    Pritzker believes the private sector representatives comprising the PAC-DBIA have been instrumental in helping the Obama administration develop the trade and investment priorities that have led to an expanded U.S.-Africa commercial relationship.

    “We have utilised their invaluable information, analysis, and recommendations to create sustainable commercial partnerships that lead to job growth, a stronger entrepreneurial ecosystem, and expanded economic opportunities. PAC-DBIA’s efforts continue to pay dividends for companies on both continents in areas as diverse as workforce training, energy, and transportation infrastructure.”

    One of President Obama’s greatest legacies will be Power Africa, a comprehensive set of resources including US government backed financial and technical support to electrify Africa it added.

    “Energy infrastructure is a fundamental enabler of growth, security and quality of life. It is for this reason that PAC-DBIA recommends that the US president make electricity its first and foremost priority”.

    They also suggested the strengthening of vocational and skills training noting that Africa cannot develop without huge investment in skills training or sustained, without a well-trained workforce. Most countries in Africa have a skills shortage it added. There is a wide gap between the strong academic programs offered by many universities in Africa, and the pragmatic skills required to advance the economies of most African nations”.

    Another recommendation the group is to improve travel routes and transportation based on their observation that Africa is the least connected continent, with less than 12 per cent of its trade being intra-regional versus over 60 per cent for the European Union.

    They also recommended that US develop a coordinated financing strategy for Africa aviation projects across US government financing institutions, including the Export Import Bank and the Overseas Private Investment Corporation, both of which have programs that assist in the financing of aviation infrastructure.

    • Additional report from International Trade Administration of Department of Commerce USA
  • LCCI: 15% forex allocation to sectors unsustainable

    LCCI: 15% forex allocation to sectors unsustainable

    The 60 per cent foreign exchange (forex) allocation by the Central Bank of Nigeria’s (CBN) to the manufacturing sector, leaving only 15 per cent allocation to other sectors of the economy, is unsustainable, the Director-General, Lagos Chamber of Commerce & Industry (LCCI), Mr. Muda Yusuf, has said.

    He told The Nation  that currently, petroleum products importation takes priority and could take 25 per  cent of forex allocation, which implies that the rest of the sectors would settle for the balance of 15 per cent.“This clearly is not a sustainable framework,” he said.

    He said the challenges facing the economy were multifarious, noting that the policy was capable of posing a risk to the stability and transparency of the forex market.

    He  said the policy was also unclear as it failed to indicate any Harmonised System (HS) code to properly define what would qualify as raw materials and machinery, adding that it might give rise to discretionary interpretation by the banks.

    The LCCI boss also frowned at the crowding out of other sectors in the forex market, saying sectors outside manufacturing account for over 85 per cent of the country’s Gross Domestic Product (GDP) and jobs, with varying import contents in their operations.

    He said there was need for  the  CBN to enlighten Nigerians on why 60 per cent of all forex allocations should go to manufacturing, raw materials and machinery, while neglecting the other sectors.

    He stressed the need for the government to recognise the importance of the interdependence of sectors and the integrated nature of the economy, noting that all sectors complement one another for the economy to function properly.

    While stressing that his position was not to diminish the critical importance of the manufacturing sector in the economy, he said the goal  was to call the CBN’s attention to the fact that other sectors play important roles as well.

    He listed other sectors that  need forex to include Information and Communication Technology (ICT), real estate, transportation, aviation, maritime, tourism, hospitality, entertainment, agriculture, distributive trade, health and education services.

    Others are broadcasting, print media, solid minerals, engineering and construction, among others, which he insisted were also very important sectors that required forex. Without these other sectors, he said, the sustainability of the forex sectoral allocation could only create more confusion in the market.

    Yusuf, therefore, advised that fiscal policy measures are better suited to address sectoral imbalances than monetary policy. Such policies, the LCCI chief said, include tools, such as import tariffs, taxation and other incentives.

    He, therefore, canvassed the need to upscale infrastructure investments very urgently. “These are more effective ways to fix the structural problems of the economy than monetary policy,” he advised.

    He also pointed out that what was key was for the monetary authorities to ensure that financial markets were efficient and transparent, and to ensure that there was discipline among players.

    Noting that this is the time to seek quick wins, Yusuf said one of the quick wins is to review current trade policy measures in order to reduce the pressure of cost on investors and citizens. He said the exchange rate depreciation has an inherent structural correction effects on the economy.

    “It (exchange rate depreciation) naturally rewards inward looking initiatives and resource based enterprises.  It is too much of a shock on the economy to combine high import duty regimes with a weak and rapidly depreciating currency,” he said.

    According to him, conversion of import values at current exchange rates for purposes of computation of import duty and other port charges have escalated costs beyond measure and had paralysed many businesses.

    Yusuf also observed the burden of cost and inflation, which he said has become unbearable with consequent aggravation of poverty. “The proposition here is to moderate the inflationary pressures and ease poverty conditions by reviewing import duty regimes and the various trade facilitation issues at the nation’s ports. This could be done without undermining current economic diversification drive,” he added.

    He further called for a more effective oversight over the terminal operators and shipping companies to curb unfair charges on imports and exports made possible by the several monopoly structures in the maritime sector.

    According to the LCCI boss, ensuring a balance between the interests of investors, producers, consumers and the welfare of citizens is a strategic imperative at this time.

  • SON moves to stimulate agric export

    SON moves to stimulate agric export

    The Standards Organisation of Nigeria (SON) has come out with strategies aimed at stimulating export of agricultural produce from Nigeria, by ensuring that agric produce meet international standards and are not rejected by the importing country.

    As part of the strategy, which was in line with the Federal Government’s economic diversification agenda, SON, according to its Acting Director-General, Dr Paul Angya, has started developing standards for select priority produce from farm to storage, cutting across soil composition, soil preparation, kind of pesticides to use, seed improvement, harvesting, packaging, labelling and storage.

    The DG, who spoke to reporters in Lagos, said the talk about alternatives to oil was not limited to manufacturing, but extended to agriculture where Nigeria has her biggest strength.

    He, however, recalled that Nigeria recently had her beans and other agro-allied products that were exported, rejected by the European Union (EU).

    The EU banned the importation of Nigeria’s dried beans in June, last year on the ground that the produce contained high level of pesticides considered dangerous to human health. While relevant government agencies were working to get the EU lift the ban, the European body extended it by another three years, citing the continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria.

    The Nation learnt that the development was seen as a national embarrassment because of the huge loss of foreign exchange for Nigeria and poor reputation for her agricultural produce exports. This may have compelled SON to adopt strategies to avoid a repeat.  “What we have done to make our agro-allied products meet international quality has been to develop standards. First of all, we identified priority products—agric and agro-allied products for export, such as cocoa, rice, beans, melon—there are about 10 of them.

    “Then we developed standards and codes of practice for these products from farm to table, comprising soil composition, soil preparation, kind of pesticides to use, seed improvement, harvesting, packaging labeling, storage, etc; and all these we develop in terms of codes of practice, because sometimes, these products are rejected not so much because of the product quality, as in the pesticides and additives that are used and how they store  them,” the SON DG said.

    He said the codes of practice were developed to guide the producers and farmers of the selected products that are of high priority from the country so that Nigeria could deliver safe and affordable agro-allied products to the international community. This is aside strengthening capacity for laboratory testing and certification of the agric produce meant for exportation, as it is key that the products do not have issues.

    Angya explained that at present the products are tested only in the countries of export, meaning that Nigeria does not have control over the results, “because we don’t have much of the facilities for testing in Nigeria. The facilities are what we call quality infrastructure. The testing laboratories are one of the major components of the national quality infrastructure.”

    According to him, there are only two of such laboratories in Nigeria, with SON and National Agency for Food, Drug Administration and Control (NAFDAC) having one each for testing food products. He, however, said SON is currently developing a large laboratory complex in Ogba, Lagos, which is over 85 per cent completed.

    He said when completed, Nigeria should be able to test all standards and parametres for foods and food products, so that the facilities will become available and much of the products coming to Nigeria will have access to this testing.

    The SON boss also said as part of the strategy to boost export of agric produce, SON had conducted trainings for its members of staff in the last few months on the codes of practice and agricultural practices.

  • Northeast records 20% poverty index

    There is child hunger in the Northeast, a report has said.

    In a special report on the “possibly deteriorating” situation in  Borno and Yobe states, FEWS NET, a network set up by USAID to provide early warning on famine and food insecurity, said surveys and screenings indicated Global Acute Malnutrition (GAM) rates “ranging from 20 to nearly 60 percent”.

    Levels of GAM recorded in July and last month were well over the 15 percent threshold deemed “critical”, and, in some cases, higher than 50 percent, meaning more than half the children surveyed suffered from moderate or severe acute malnutrition, the report said.

    The report further stated that this level of acute malnutrition reflected an “Extreme Critical’ situation … and is associated with a significantly increased risk of child mortality,” stressing that conditions might be even worse in areas that remained inaccessible.

    United Nations Child Education Fund (UNICEF) helped to draw attention to the unfolding crisis in the Northeast in July, highlighting the fact that an estimated 244,000 children faced severe malnourishment in Borno alone, and warning that an estimated 49,000, one in five, would die if they didn’t receive treatment.

    Head of Communication for Action Contre La Faim (Action Against Hunger), which conducted several of the surveys, Elizabeth Wright, said the situation represented the worst humanitarian crisis and suffering since World War II.

    “We are seeing a horrifying prevalence of malnutrition that far exceeds emergency thresholds, and people are facing catastrophic levels of food insecurity,” she stated.

    The latest red flag from FEWS NET draws attention to places  such as Banki town and Bama, in Borno State, where the threat of Boko Haram violence continues to limit movement and prevent humanitarian access.

    Wright pointed out that much of the latest data was based on Mid-Upper Arm Circumference (MUAC) screenings of children under five, which could give a good reading of the trend but were not as technically sound for showing malnutrition prevalence as fuller nutritional assessments.

    According to her, it was vital that humanitarian actors should be able to conduct technically-sound nutrition assessments in newly accessible areas of Borno to quantify the scale and severity of needs and to guide the most appropriate, effective humanitarian response.

    Despite her caution over the data, Wright said 50 percent levels of GAM were very unusual and similar to what was seen during the 2011 crisis in Somalia when the scale and severity of hunger led to a declaration of famine by experts and the UN.

    In the wake of the UNICEF campaign, Bama, one of the towns most hit by insurgency and  home to 270,000 people, is now a ghost town. Currently the streets are deserted, the houses have no roofs, and there is literally no sign of life.

    It has, however, enjoyed a brief spell in the international media spotlight. It even received a string of high-profile visitors, including Africa’s richest man Aliko Dangote, and a range of relief items, including food, clothing and drugs.

  • ‘Nigeria losing out in N171tr ceramics trade’

    ‘Nigeria losing out in N171tr ceramics trade’

    The global ceramics industry is projected to hit $408 billion (about N171 trillion) by 2018. But Nigeria has not been able to claim a chunk of this huge market, a professor of Ceramics Technology, Patrick Oaikhinan, has said.

    Speaking with The Nation, he regretted that Nigeria imports about $600 million (about N252 billion) worth of ceramic products yearly. He said because Nigeria did not produce up to one per cent of the global market demand for ceramics, the nation would continue to lose out in the profitable trade.

    Oaikhinan, who is the chief executive officer, Epina Technologies Limited, said: “Nigeria occupies the eight position among the top 18 emerging economies for ceramics trade, but is also the only country in the world without ceramics export. Other developing countries are quickly learning the trade and moving into high-quality product categories.

    “Nigeria’s ceramics industry cannot compete with other producers on price. The way out is for us to make ourselves relevant in our local market by focusing on continuous improvement, innovation, and upgrading.”

    Stating that many ceramic firms in Nigeria were micro, small and medium enterprises (MSMEs),  he urged the government to tap into the sector.

    To him, the country has comparative advantages in abundant raw materials and trainable workforce, which are capable of transforming it into a successful ceramics industry.

    He, however, regretted the absence of skilled manpower for capacity building in ceramic science, engineering and technology in universities, polytechnics and technical colleges.

    He said this had prevented the growth of the industry and forestalled an estimated five million direct and indirect jobs that could have been created from ceramics production.

    Oaikhinan said in India, 5.5 million people were employed in the ceramic tiles industry. He said with 72.9 per cent of Nigerians said to be jobless, the industry could open up new windows of opportunities.

    He also said apart from generating employment, a thriving ceramic education and manufacturing business could help achieve a competitive, resource-efficient economy by 2020, while also reducing by about 20 per cent the N252 billion paid as customs duty.

    Giving insight into the production process for ceramics, he said it required people with a good background in chemistry, mathematics, physics, technical drawing and design.

    Stressing the need to drive innovation in ceramics manufacturing and nurture a skilled and knowledgeable workforce, Oaikhinan emphasised that one of the major weaknesses of the industry was its ineffective, low-skilled workforce, which produced low-quality art products.

    He said good theoretical and technical education in ceramic science, engineering and technology was not available, and no attention was being paid to ceramic training.

    Besides, Oaikhinan said, facilities and equipment were not available in the Nigerian educational system, even as local manufacturers’ technical capability was not adequate.

    He lamented that there was no capacity for growth in the industry as supply-chain management was lacking, with internal efforts focused mostly on importation.

    He said this was why most companies imported a certain percentage of their raw materials, including kaolin and ball clay.

    Oaikhinan pointed out that the ceramics industry had not yet undertaken joint purchasing of needed local materials, adding that communication among industry operators was fragmented.

    “Unless our education sector supports individuals’ efforts the motivation of the next generation of youths to enhance their career and employment opportunities with ceramics will be very difficult,” he warned.

    Oaikhinan identified the inclusion of ceramic products on the 41 items on the Central Bank of Nigeria (CBN) Foreign Exchange (Forex) restriction list as another factor limiting the growth of the industry.

    He advised the the apex bank to rethink  the forex restriction, saying it was a major disincentive to investors who wished to venture into ceramic production. This, he said, was because most of the materials used in its manufacturing, such as machines, glazes, and stains, were imported.